KUALA LUMPUR (Nov 11): The government said on Wednesday that at least four of Malaysia’s largest private hospital groups have expressed interest in joining MediAsas, the nation-backed medical insurance and takaful plan slated for nationwide rollout at the end of January 2027.
Deputy Finance Minister Liew Chin Tong did not name the groups as their participation had yet to be finalised, but said the government and Bank Negara Malaysia (BNM) hoped to attract as many hospitals as possible.
“The MediAsas plan is on track for nationwide implementation by late January 2027,” Liew told the Dewan Rakyat during oral questions time in the Dewan Rakyat on Wednesday.
“Findings from the pilot rollout and stakeholder feedback from stakeholders are being used to refine its implementation, and further input remains open for submission.”
MediAsas is a voluntary, standalone medical insurance and takaful plan with standardised benefits, designed to widen access to private healthcare.
It targets people without coverage and those seeking a more affordable alternative to existing policies.
The plan will use a diagnosis-related group (DRG) payment mechanism, under which hospital payments are determined by diagnosis and treatment categories, to make costs more predictable.
The initiative seeks to address the rising cost of private hospital treatment while giving consumers another option alongside public healthcare, Liew said.
The deputy minister was responding to Datuk Alias Razak (PN-Kuala Nerus), who asked how the government would assess the pilot’s success of the programme, particularly in containing treatment costs and ensuring affordable coverage. The pilot phase began in the Klang Valley at the end of July to test the readiness of insurers, takaful operators and private hospitals, as well as consumers’ understanding and acceptance of the plan.
Thus far, public feedback on the pilot had been encouraging, while engagement sessions were continuing to identify consumers’ needs and concerns, according to Liew.
The pilot phase involved six insurers and takaful operators and 10 hospitals in the Klang Valley from end July to October 2026.
They include AIA Bhd, Allianz Life Insurance Malaysia Bhd — a unit of Allianz Malaysia Bhd (KL:ALLIANZ), Great Eastern Life Assurance (Malaysia) Bhd, Prudential BSN Takaful Bhd, Etiqa Family Takaful Bhd and Syarikat Takaful Malaysia Keluarga Bhd (KL:TAKAFUL), among others.
BNM has indicated a target monthly premium range of RM60 to RM550 for individuals with entry ages of up to 70. Final product features and pricing will be published at the nationwide launch.
When tabling the Budget 2027, Prime Minister Datuk Seri Anwar Ibrahim said the government will subsidise first-year premiums by RM200 per employee for small and medium enterprises with fewer than 75 employees, capped at 50 workers per company. The measure is expected to benefit up to 200,000 workers. At the same time, Employees Provident Fund (EPF) members below 55 will also be allowed to use their Akaun Sejahtera savings to pay MediAsas premiums.
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